Suppose that a banks ALCO reports that the bank is too liability sensitive; that is, earnings will

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Suppose that a bank’s ALCO reports that the bank is too liability sensitive; that is, earnings will fall more than desired should rates rise. You have been asked to reduce the bank’s earnings sensitivity. What specific strategies might the investment man-ager pursue? Identify the cost and benefit of each. Is each an active or passive strategy and is it speculative?
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Bank Management

ISBN: 978-1133494683

8th edition

Authors: Timothy W. Koch, S. Scott MacDonald

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